International Trade complianace news and update for Japan, US ,and Asia.

2011年11月8日火曜日

Japan will change definition of "Use"

On November 7, 2011, Japan METI announced new notification draft to seek public comment regarding export control term's new definition. It is to change the definition of "Use". Perhaps export control professionals are familiar with this term in technology transfer, the controlled technology is defined as "development", "manufacturing", or "use" relating to controlled item. The notification draft specifically define the interpretation of "Use" with the change of the notification.

In Japan, the definition of "Use" is not defined in controlled item's list, but in METI notification called "役務通達 or Ekimu Tsutatsu". Currently, the definition is described as below.

Use is defined as "Operation, installation (including on-site installation), maintenance (inspection), repair, overhaul, refurbishing etc which are stages other than development and manufacturing.

In new notification draft, it will be changed as below, specifically limiting the words:
Use is defined as "Operation, installation (including on-site installation), maintenance (inspection), repair, overhaul, and refurbishing" (Please be noted the 'and' here is not same as the definition of US EAR. Perhaps 'or' may be better in Japan, as all six activities are not necessary to trigger a license requirement. Any one of them is fine to be recognized as sufficient. )

The difference is that the new definition is narrowed by removing "etc., stages other than development and manufacturing". At this point of time, with this phrase, Japan's definition of "Use" tend to be interpreted more broadly and to cover more "use" technology than other countries who follow Wassenaar Arrangement.
This change is to reflect and to follow the Wassenaar's definition which will make Japanese export control practice same as other WA countries.

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